FedEx Earnings Double in Q1

Share this content:
FedEx Corp.'s first-quarter earnings more than doubled, pushed by an expansion of international express deliveries and ground shipping, the Memphis, TN, company said yesterday.

FedEx earned $330 million for the three months ended Aug. 31, up from $128 million the same time a year ago. Revenue was $6.98 billion, up 23 percent from $5.69 billion, and operating income was $579 million, up from $200 million.

Total average daily package volume at FedEx Express and FedEx Ground grew a combined 6 percent year over year for the quarter due to continued strong growth in international express shipments and higher growth in ground shipments. FedEx Freight average daily less-than-truckload shipment volume increased 14 percent. Revenue per package increased at FedEx Express and FedEx Ground, while LTL revenue per hundredweight grew at FedEx Freight.

"Our strong earnings performance reflects an increased demand for our broad portfolio of services, successful execution of our cross-selling strategy and the expanding global economy," said Frederick W. Smith, chairman, president and CEO. "Customers are increasingly seeing the value of using FedEx to reach new markets, grow their businesses and cut inventory-carrying costs."

First-quarter revenue included $490 million from FedEx Kinko's, which was acquired in late fiscal 2004.

FedEx expects second-quarter earnings to be $1.10 to $1.20 per diluted share, while earnings for the year are still expected to be $4.40 to $4.60 per diluted share.

Capital spending for fiscal 2005 is forecast around $2.1 billion. Growth in FedEx International Priority services requires additional aircraft capacity and infrastructure for FedEx Express. Growth at FedEx Freight and FedEx Ground is also driving further investments in those networks.

"We continue to be highly focused on increasing profitability and improving returns and cash flow," said Alan B. Graf Jr., executive vice president and chief financial officer. "The increased investment in our networks is expected to give us the necessary capacity to handle anticipated growth in the future. We expect cash flows from operating activities to exceed capital spending even with these additional capital investments."


Next Article in Direct Mail

Sign up to our newsletters

Company of the Week

USAData helps businesses find new customers and grow their current customers through a combination of data and digital marketing services, and easy-to-use SaaS technology products. We enrich customer data so businesses can more effectively target and communicate with customers, and connect them with their best look-alike prospects through digital and traditional channels. We make it easy through simple, self-serve applications and APIs, as well as through full-service programs managed by our Data and Digital experts. 

Find out more here »

Career Center

Check out hundreds of exciting professional opportunities available on DMN's Career Center.  
Explore careers in digital marketing, sales, eCommerce, marketing communications, IT, data strategies, and much more. And don't forget to update your resume so employers can contact you privately about job opportunities.

>>Click Here

Relive the 2017 Marketing Hall of Femme

Click the image above